While Coles maintained that it could not have predicted the retailer’s receivership — emphasising that it had already passed on the gift card funds to Dick Smith — it caved under the weight of public pressure.

Kogan to help Dick Smith customers with unusable gift cards0:29

Online department store Kogan will be assisting those who have Dick Smith vouchers they can no longer use by giving them a $25 Kogan gift card. Courtesy: A Current Affair/Nine Network

January 7th 2016

2 years ago

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The gift card swap could hit the supermarket chains’ bottom lines if they are unable to recoup the value of Dick Smith cards they sold, which could well run into the millions of dollars.

Those who bought direct from the beleaguered electronics chain have not been so lucky.

Unless Ferrier Hodgson changes its mind, they will have to register as unsecured creditors and hope that there’s enough cash to pay them once the banks have recouped what they are owed.

Other businesses to offer refunds include app start-up Prezzee, which quickly promised those who bought a Dick Smith gift card on its platform that they could claim its value against a gift card from one of its other partners, such as Myer.

Online retailer Kogan is offering a $25 voucher for each Dick Smith gift card, but will not value match and its offer is limited to one per customer.

Dick Smith has disabled visitor comments to its Facebook page, which in recent days has been subject to a deluge of angry posts along with messages from those keen to cash in on the situation. Some have offered to buy up Dick Smith gift cards and “try my luck as an unsecured creditor”.

Many customers were outraged that Ferrier Hodgson was continuing to operate Dick Smith stores while refusing to honour gift cards and deposits, essentially selling goods while refusing to hand over those that had “already been paid for”.

Shoppers left in a similar position by the Borders bookstore chain’s collapse were still fighting for refunds four years later, the Wall Street Journal reports.

When Borders filed for bankruptcy in February 2011, it left behind 17.7 million useless gift cards worth more than $200 million.

Meanwhile, the ACCC is monitoring Dick Smith’s receivership and how it will hit customers.